Primo Brands: Strong Q2 Confirms Bullish Thesis

Primo Brands Corporation is rated BUY, leveraging robust 2Q26 results, improved operating leverage, and a compelling valuation discount.

PRMB raised 2026 sales guidance to +2–4% growth, driven by premium brand momentum and higher-margin direct sales outperforming expectations.

Operational efficiencies, including delivery route optimization and internal driver hiring, have expanded EBITDA margins and enhanced free cash flow trends.

Recent share price weakness from a major institutional sell-off presents a buying opportunity, with PRMB trading at a 28% EV/EBITDA discount to its peak.

I last wrote on Primo Brands Corporation (PRMB) on June 24, and the stock is down around 12% since then, with most of the downside coming post 2Q26 earnings, where a major institutional investor sold.